Angkasa Pura seeks funding for expansion in Soekarno-Hatta airport

The Jakarta Post, Jakarta

State airport operator PT Angkasa Pura II is seeking some Rp 3.5 trillion (US$353 million) to fund the expansion of the Soekarno- Hatta International Airport to accommodate a projected rise in the number of airline passengers.

President director Edie Haryoto said on Monday the funds would be used to build a third terminal at the airport, which would start construction next year.

"We will need around Rp 3.5 trillion. The source for the funds is still being evaluated, with several available options, including bonds, private investors, and bank loans," Edie said quoted by Antara.

The Ministry of Transportation estimates there will be a total of around 38 million air passengers next year, up from around 29 million estimated for this year.

"Next year, airline passengers are expected to grow by 5 percent. The Soekarno-Hatta Airport alone can accommodate 18 million passengers. But totals could reach 26 million," Edie said.

For 2006, Angkasa Pura has allocated Rp 800 billion for capital expenditure, with most of the funds to be used for expanding the capacity of airports under the company's management.

Edie said the company was expected to reap in some Rp 620 million in operational profits this year, up slightly by 3 percent from last year. Most of the profits were derived from domestic passengers.

Soekarno-Hatta Airport contributed the lion's share of the revenue, followed by airports in Medan, Pekanbaru and Pontianak.

Along with Soekarno-Hatta, the company manages Husen Sastranegara Airport in Bandung, West Java; Tanjung Pinang Airport in Riau Islands; Sultan Iskandar Muda Airport in Aceh; Halim Perdana Kusuma Airport in East Jakarta; Minangkabau International Airport in Padang, West Sumatra; Simpang Tiga Airport in Pakanbaru, Riau; Palembang Airport in South Sumatra; and Polonia Airport in Medan, North Sumatra. -- JP